Plans for stock market expansion

Vietnam will allow more share listings, improve the legal framework and restructure its small but fast-growing stock market this year.

The measures would boost the stock market's capitalization to 20 billion US$ by the end of the year, or 30% of gross domestic product, the newspaper "Tin Tuc" quoted State Securities Commission chairman Vu Bang. The Finance Ministry would also seek to expand the operation of stock broking firms and boost surveillance to improve transparency and corporate governance, he said.
Vietnam would need to upgrade the market's information technology, provide more training for staff and raise public awareness of securities investment.

The Ho Chi Minh City Securities Trading Center opened in July 2000 and now trades shares in 105 companies and Sacombank as well as certificates of two investment funds and a number of government bonds.

"The awareness and knowledge of companies and people on the stock market has risen significantly," Finance Minister Vu Van Ninh was quoted as saying last week in an interview with the ministry-run Vietnam Financial Times newspaper. "This is a good base to develop the stock market into a long-term fund raising channel for the economy".

Reflecting investor interest and the economic growth, the Vietnam share index ended 2006 at 751,77 points, a rise of 145% over the year. Market capitalization was 9 billion US$. The index hit a lifetime high yesterday, rising 2.5% to close at 865.71 points.

In the Hanoi over-the-counter market , where 86 companies and a bank are listed, the index also hit a lifetime high on Wednesday at 291.2 points.

Source: REUTERS